Filing your taxes is a must. Also, you must do it on time and properly. Failing to file taxes on time or failing to file altogether can attract stiff penalties. No one wants that.
This is one of the reasons many small business now retain the services of professional tax preparers. Their knowledge and professionalism means that you’ll never hear about penalties at any point.
But not just that; here are four other advantages of working with a professional tax preparer rather than doing your taxes on your own or relying on online tax tools.
- Ease the burden
Tax matters are complicated. An SMB owner filing returns on their own has to complete and file a number of forms including the IRS 1040, Schedule A, Schedule C, and Schedule SE. Completing each form isn’t something you can do in one sitting. You need to gather several documents and records and capture information from 1099s or 1099-INTs. It gets worse; you may not even understand these documents in the first place, putting an even greater burden on your shoulders. Hiring a professional tax preparer takes such duties off your mind allowing you to focus on growing the business.
- Keep errors to a minimum
Another issue with taxes is errors. The IRS, on its website, keeps a list of the most common errors people make when filing returns. You’ll be surprised at how long the list is and how petty some errors are. For instance, it’s been noted that a significant number of those filing their returns enter payments on the wrong line. Another common error is basic arithmetic mistakes. When you do this, the tax body may be forced to reject or levy a fine on your filing. Also, mistakes in tax files can potentially delay any refunds due, resulting in unnecessary interest. Professional tax preparation keeps errors to a minimum.
- Avoid adverse consequences
It’s not just fines and interests that you could be faced with though. Improper filing or failure to file can result in severe consequences, possibly culminating to legal battles. You could easily be taken to court for tax offences such as evasion. These suits attract hefty penalties and even imprisonment in some cases. Additionally, your credit history might be affected too. If the IRS files a lien, that information can remain on your credit history for 7 years. Above all, the IRS is allowed to levy your account, garnish your wages, and seize your property. Consider professional tax preparation to avoid these situations.
- Get crucial tax advice
Finally, a professional tax company will provide valuable tax advice that can help you save a lot of money in the long run. From deductions you qualify for to credits and everything in between, they know exactly what you could do to lower your tax burden.
Doing your taxes on your own or using online tax tools might seem cheaper. But the professionalism of established tax experts protects you from unforeseen consequences that may prove very costly in the long run.